The World Bank India: Elementary Education III (P144447) REPORT NO.: RES27002 DOCUMENT OF THE WORLD BANK RESTRUCTURING PAPER ON A PROPOSED PROJECT RESTRUCTURING OF INDIA: ELEMENTARY EDUCATION III APPROVED ON MAY 16, 2014 TO GOVERNMENT OF INDIA EDUCATION SOUTH ASIA Regional Vice President: Annette Dixon Country Director: Junaid Kamal Ahmad Senior Global Practice Director: Jaime Saavedra Chanduvi Practice Manager/Manager: Keiko Miwa Task Team Leader: Shabnam Sinha, Margaret M. Clarke The World Bank India: Elementary Education III (P144447) I. BASIC DATA Product Information Project ID Financing Instrument P144447 Investment Project Financing Original EA Category Current EA Category Approval Date Current Closing Date 16-May-2014 30-Sep-2017 Organizations Borrower Responsible Agency Government of India Ministry of Human Resource Development Project Development Objective (PDO) Original PDO The PDO is to improve education outcomes of elementary school children in India Summary Status of Financing Net Ln/Cr/Tf Approval Signing Effectiveness Closing Commitment Disbursed Undisbursed IDA-54470 16-May-2014 29-May-2014 10-Jul-2014 30-Sep-2017 164.80 102.72 44.65 IDA-54480 16-May-2014 29-May-2014 10-Jul-2014 30-Sep-2017 841.40 780.55 0 Policy Waiver(s) Does this restructuring trigger the need for any policy waiver(s)? No II. SUMMARY OF PROJECT STATUS AND PROPOSED CHANGES The World Bank India: Elementary Education III (P144447) Background: The support being provided to the Sarva Shiksha Abhiyan (SSA) under the Third Elementary Education project comes to a close in September, 2017. Out of the total Credit amount of US$1006.2 million, the project has almost fully disbursed, with only US$ 44.65 million remaining to be disbursed. The current rating for progress towards achievement of Project Development Objectives (PDO) and Implementation Progress are both “Satisfactory”. The project has met the targets for nearly all Key Performance Indicators (KPIs). The project mid-term review (coinciding with the 23rd Joint Review Mission (JRM) of SSA) had highlighted to the client certain program components that needed to be strengthened. The Bank end-term review (coinciding with the 24th Joint Review Mission of SSA) noted that the government had responded to the findings of the mid-term review by implementing strategic initiatives and strengthening output/outcome based monitoring of program implementation. The review acknowledged a shift in priorities from improving access to schooling to enhancing the quality of education being provided at government schools. The JRM team appreciates the accelerated action taken by Ministry of Human Resource Development’s (MHRD) towards implementing focused reforms for improving the learning outcomes of children as well as the visible commitment of top leadership in this regard. These improvements were recorded in the recent Implementation Status and Results Report. Most importantly, the World Bank team is happy to note that the MHRD has agreed to participate in Programme for International Student Assessment (PISA) in 2021, including a capacity building gestation period from 2018-2020 that would be supported through the Third Elementary Education Project and eventually through the Additional Financing (AF) under this project. Moving Forward: The Bank team is currently working with MHRD to move from a programmatic Sector Wide Approach to a more strategic and results based financing approach. The latter will be more in line with the project priorities. While the PDO will remain the same, the project will be restructured through AF around the five key components: • Strengthening Learning Outcome Assessment • Strengthened Early Learning • Improving Teacher Management and Performance • Facilitating Effective School Planning, Supervision and Governance • Developing an All Schools, Monitoring, Individual Tracking, and Analysis (ASMITA) System The Additional Financing will also involve the setting up of a system of ‘State Incentive Grants’ (SIG) that would incentivize states to perform better by providing them with additional finances upon realization of specified targets. This will build on the central government’s efforts to leverage the spirit of competitive federalism to facilitate and incentivize state level performance. The states will be able to utilize these funds for conducting innovative pilots and undertake initiatives that can enhance the quality of education being imparted at schools. Rationale for No-Cost Extension: The current project closes on September 30, 2017 and the team requests for a no- cost extension to the project Closing Date till September 30, 2018. The no cost extension will provide sufficient time to prepare the AF and restructuring of the project. The Bank is expecting a request for AF from the client as the matter is under consideration of the Department of Economic Affairs for submission to the Screening Committee. Further, the extension to the Closing Date will allow the World Bank to continue providing the required financial and technical support to Government of India for the implementation of PISA. III. DETAILED CHANGES The World Bank India: Elementary Education III (P144447) LOAN CLOSING DATE(S) Original Revised Proposed Proposed Deadline Ln/Cr/Tf Status Closing Closing(s) Closing for Withdrawal Applications IDA-54470 Effective 30-Sep-2017 30-Sep-2018 30-Jan-2019 IDA-54480 Effective 30-Sep-2017